Allscripts announces first quarter 2013 results

               Allscripts announces first quarter 2013 results

Bookings total $178 million; operating cash flow of $39 million

PR Newswire

CHICAGO, May 9, 2013

CHICAGO, May 9, 2013 /PRNewswire/ --Allscripts Healthcare Solutions, Inc.
(NASDAQ: MDRX) today announced financial results for the three months ended
March 31, 2013.

First-Quarter Highlights:

  oAcquired dbMotion, Ltd., a platform for care coordination and population
    health management to aggressively advance Allscripts Open, Connected
    Community of Health strategy. The Company also acquired Jardogs Follow My
    Health™ consumer health engagement platform to enable patients to
    participate in their care and optimize health status.
  oIncreased gross research and development spending 19 percent
    year-over-year to support key industry requirements, including Stage 2
    Meaningful Use preparedness and ICD-10 readiness and long-term product
    investments.
  oThe Company made progress on key client focus areas including executing
    multiple acute system new activations and upgrades across the client base.
  oAnnounced the general availability of Allscripts Care Director, a
    multi-tenant, web-based solution that coordinates outpatient care across
    healthcare settings and provides a targeted solution for population health
    management professionals.
  oLaunched several initiatives to improve operational effectiveness
    including a Centers of Excellence strategy for Solutions Development and a
    plan to consolidate North American offices. The Company continues to
    expect in excess of $50 million in annualized savings from operational
    effectiveness initiatives, beginning in 2014.

"We are making progress in key areas including an unwavering client focus,
delivering on our commitments and driving operational effectiveness," said
Paul M. Black, President and Chief Executive Officer of Allscripts."In
addition, we took a series of important actions this quarter to advance our
Open, Connected Community of Health strategy, enhancing our competitive
positioning, including the acquisitions of dbMotion and Jardogs."

Mr. Black continued,"We are investing heavily in both our clients and our
products and so while our financial results for the quarter are not
surprising, they arenot satisfactory and not indicative of our long term
potential. This is a rebuilding year for Allscripts andI remain confident we
are taking the right steps forward."

First-Quarter Details:

  oBookings(1)  of $177.7 million. This compares with bookings of $194.6
    million in the first quarter of 2012 and $180.7 million in the fourth
    quarter of 2012.
  oGAAP revenue of $347.1 million and non-GAAP revenue of $348.0 million.
    This compares with GAAP and non-GAAP revenue of $364.7 million and $365.5
    million, respectively, in the first quarter of 2012.
  oGAAP gross profit for the three months ended March 31, 2013, was $134.4
    million. This compares with GAAP gross profit of $155.7 million in the
    first quarter of 2012.
  oNon-GAAP gross profit was $147.9 million for the three months ended March
    31, 2013, or 42.5 percent of total non-GAAP revenue. This compares with
    $164.7 million or 45.1 percent of non-GAAP revenue for the prior-year
    period.
  oGAAP operating loss for the three months ended March 31, 2013, including
    certain non-recurring expenses and transaction-related costs, was $28.3
    million. This compares with GAAP operating income of $13.0 million in the
    first quarter of 2012.
  oNon-GAAP operating income, excluding certain non-recurring expenses and
    transaction-related costs, was $17.6 million for the three months ended
    March 31, 2013, or 5.1 percent of total non-GAAP revenue. This compares
    with $40.9 million or 11.2 percent of non-GAAP revenue for the prior year.
  oGAAP net loss for the three months ended March 31, 2013, including certain
    non-recurring expenses and transaction-related costs, was $11.6 million
    and GAAP loss per share was $0.07. This compares with net income of $5.8
    million and diluted earnings per share of $0.03 in the first quarter of
    2012.
  oNon-GAAP net income, after adjustments for certain non-recurring expenses
    and transaction-related costs, was $16.2 million resulting in non-GAAP
    diluted earnings per share of $0.09. This compares with $23.5 million and
    $0.12, respectively, in the first quarter of 2012.
  oAdjusted EBITDA was $49.8 million for three months ended March 31, 2013,
    or 14 percent of total non-GAAP revenue. This compares with $58.3 million
    or 16 percent of non-GAAP revenue for the prior-year period.
  oFirst quarter 2013 GAAP results include the following items, all on a
    pre-tax basis:

       oAcquisition-related deferred-revenue adjustment of $0.9 million.
       oAcquisition-related amortization expense of $16.2 million.
       oStock-based compensation expense of $8.0 million.
       oNon-recurring expenses and transaction-related costs totaled $20.8
         and consist of the following:

            oseverance and other costs primarily associated with site
              consolidation totaling $12.6 million;
            oMyWay™ product consolidation costs of $6.2 million;
            oTransaction-related costs of $2.0 million related to the
              acquisitions of dbMotion and Jardogs.

       oPlease refer to the Explanation of Non-GAAP Financial Measures
         section in this news release for further discussion of these items.

Please refer to Table 4 "Condensed Non-GAAP Financial Information" for a
complete reconciliation of all GAAP and non-GAAP financial measures discussed
in this news release.

Liquidity and Cash

During the first quarter of 2013, Allscripts repaid approximately $18 million
of borrowings under its senior secured credit facilities. In connection with
the acquisitions of dbMotion and Jardogs in March 2013, the Company borrowed
an additional $120 million under its existing revolving credit facility.

As of March 31, 2013, the Company had approximately $544 million of borrowings
under its senior credit facilities. The Company reported cash and marketable
securities totaling approximately $94 million as of March 31, 2013.

Conference Call

Allscripts will conduct a conference call today, Thursday, May 9, 2013, at
4:30 PM Eastern Daylight Time to discuss the Company's earnings and other
information. Investors can access the conference via the Internet at
http://investor.allscripts.com. Participants also may access the conference
call by dialing (877) 303-0543 (toll free in the US) or +1 (973) 935-8787
(international) and requesting Conference ID # 32928759.

A replay of the call will be available two hours after the conclusion of the
call, for a period of two weeks, at http://www.allscripts.com or by calling
(855) 859-2056 or +1 (404) 537-3406 - Conference ID # 32928759.

Supplemental and non-GAAP financial information is also available at
http://investor.allscripts.com.

Footnotes

(1) Bookings reflect the value of executed contracts for software, hardware,
    services, remote hosting, outsourcing and SaaS.

About Allscripts

Allscripts(NASDAQ:MDRX) delivers the insights that healthcare providers
require to generate world-class outcomes. The company's Electronic Health
Record, practice management and other clinical, revenue cycle, connectivity
and information solutions create aConnected Community of Health™ for
physicians, hospitals and post-acute organizations. To learn more about
Allscripts, please visitwww.allscripts.com, Twitter, YouTube and It Takes A
Community: The Allscripts Blog.

© 2013 Allscripts Healthcare, LLC. All Rights Reserved.

Allscripts, the Allscripts logo, and other Allscripts marks are either
registered trademarks or trademarks of Allscripts Healthcare, LLC in the
United States and/or other countries. All other trademarks are the property
of their respective owners.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the federal securities laws. Statements regarding future events or
developments, our future performance, as well as management's expectations,
beliefs, intentions, plans, estimates or projections relating to the future
are forward-looking statements with the meaning of these laws. These
forward-looking statements are subject to a number of risks and uncertainties,
some of which are outlined below. As a result, no assurances can be given that
any of the events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what impact they will have on our results
of operations or financial condition. Such risks, uncertainties and other
factors include, among other things: the possibility that our current
initiatives focused on product delivery, client experience, streamlining our
cost structure, and financial performance may not be successful, which could
result in customer attrition; the impact of the realignment of our sales and
services organization; potential difficulties or delays in achieving platform
and product integration and the connection and movement of data among
hospitals, physicians, patients and others; the risk that we will not achieve
the strategic benefits of the merger (the "Eclipsys Merger") with Eclipsys
Corporation (Eclipsys), or other companies that we have purchased or that the
Allscripts products will not be integrated successfully with these other
companies products; competition within the industries in which we operate,
including the risk that existing clients will switch to products of
competitors; failure to maintain interoperability certification pursuant to
the Health Information Technology for Economic and Clinical Health Act, with
resulting increases in development and other costs for us and possibly putting
us at a competitive disadvantage in the marketplace; the volume and timing of
systems sales and installations, the length of sales cycles and the
installation process and the possibility that our products will not achieve or
sustain market acceptance; the timing, cost and success or failure of new
product and service introductions, development and product upgrade releases;
we may incur costs or customer losses relating to the standardization of our
small office electronic health record and practice management systems that
could adversely affect our results of operations; competitive pressures
including product offerings, pricing and promotional activities; our ability
to establish and maintain strategic relationships; errors or similar problems
in our software products or other product quality issues; the outcome of any
legal proceeding that has been or may be instituted against us and others;
compliance obligations under new and existing laws, regulations and industry
initiatives, including new regulations relating to HIPAA/HITECH, increasing
enforcement activity in respect of anti-bribery, fraud and abuse, privacy, and
similar laws, and future changes in laws or regulations in the healthcare
industry, including possible regulation of our software by the U.S. Food and
Drug Administration; the possibility of product-related liabilities; our
ability to attract and retain qualified personnel; the continued
implementation and ongoing acceptance of the electronic record provisions of
the American Recovery and Reinvestment Act of 2009, as well as elements of the
Patient Protection and Affordable Care Act (aka health reform) which pertain
to healthcare IT adoption, including uncertainly related to changes in
reimbursement methodology and the shift to pay-for-outcomes; maintaining our
intellectual property rights and litigation involving intellectual property
rights; legislative, regulatory and economic developments; risks related to
third-party suppliers and our ability to obtain, use or successfully integrate
third-party licensed technology; breach of data security by third parties and
unauthorized access to patient health information by third parties resulting
in enforcement actions, fines and other litigation. See our Annual Report on
Form 10-K/10K-A for 2012 and other public filings with the SEC for a further
discussion of these and other risks and uncertainties applicable to our
business. The statements herein speak only as of their date and we undertake
no duty to update any forward-looking statement whether as a result of new
information, future events or changes in expectations.

Table 1
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Balance Sheets
(In millions)
(Unaudited)
                                                      March 31,  December31,
                                                      2013       2012
ASSETS
Current assets:
Cash and cash equivalents                             $92.2      $104.0
Accounts receivable, net                              351.8      337.0
Deferred taxes, net                                   57.0       56.5
Prepaid expenses and other current assets             118.3      110.0
Total current assets                                  619.3      607.5
Long-term marketable securities                       1.7        1.7
Fixed assets, net                                     162.3      155.6
Software development costs, net                       92.9       95.6
Intangible assets, net                                504.1      427.0
Goodwill                                              1,189.8    1,039.4
Deferred taxes, net                                   7.5        7.5
Other assets                                          45.2       50.2
Total assets                                          $2,622.8   $2,384.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                                      $73.0      $45.9
Accrued expenses                                      94.1       93.1
Accrued compensation and benefits                     46.6       44.1
Deferred revenue                                      327.9      290.7
Current maturities of long-term debt and capital      85.7       79.3
lease obligations
Total current liabilities                             627.3      553.1
Long-term debt                                        458.6      362.7
Deferred revenue                                      24.1       19.8
Deferred taxes, net                                   112.4      125.9
Other liabilities                                     66.1       38.7
Total liabilities                                     1,288.5    1,100.2
Total stockholders' equity                            1,334.3    1,284.3
Total liabilities and stockholders' equity            $2,622.8   $2,384.5



Table 2
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Operations
(In millions, except per-share amounts)
(Unaudited)
                                          Three Months Ended March 31,
                                          2013                   2012
Revenue:
System sales (a)                          $27.0                  $37.2
Professional services                     61.1                   71.5
Maintenance (a)                           117.7                  118.3
Transaction processing and other          141.3                  137.7
Total revenue                             347.1                  364.7
Cost of revenue:
System sales                              13.3                   16.6
Professional services                     57.5                   61.7
Maintenance                               36.6                   36.0
Transaction processing and other          85.7                   79.7
Amortization of software development      19.6                   15.0
costs and acquisition-related assets (b)
Total cost of revenue                     212.7                  209.0
Gross profit                              134.4                  155.7
Selling, general and administrative       104.2                  97.3
expenses
Research and development                  51.0                   36.1
Amortization of intangible assets         7.5                    9.3
(Loss) income from operations             (28.3)                 13.0
Interest expense                          (4.6)                  (3.9)
Interest income and other, net (c)        8.1                    0.4
(Loss) income before income taxes         (24.8)                 9.5
Benefit (provision) for income taxes      13.2                   (3.7)
Net (loss) income                         ($11.6)                $5.8
Earnings (loss) per share - basic and     ($0.07)                $0.03
diluted
Weighted average common shares
outstanding:
Basic                                     173.7                  190.6
Diluted                                   173.7                  192.9
(a) Certain prior period amounts in
system sales have been reclassified to
maintenance to conform to the current     $0.0                   $3.5
period presentation. The amount reclassed
for each period presented is as follows:
(b) Amortization of software development
costs and acquisition-related assets
includes:
Amortization of capitalized software      $10.9                  $7.8
development costs
Amortization of acquired intangible       7.5                    7.2
assets
Acquisition-related amortization          1.2                    0.0
                                          $19.6                  $15.0
(c) Interest income and other for the three months ended March 31, 2013
includes a gain of approximately $4.7 million resulting from the sale of
Allscripts investment in Humedica, Inc., as well as a gain of approximately
$3.3 million from the final valuation of Allscripts' minority interest in
dbMotion, Ltd. held prior to the acquisition of the company.



Table 3
Allscripts Healthcare Solutions, Inc.
Condensed Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
                                                  Three MonthsEnded March 31,
                                                  2013              2012
Cash flows from operating activities:
Net (loss) income                                 ($11.6)           $5.8
Non-cash adjustments to net (loss) income:
 Depreciation and amortization                  40.8              35.2
 Stock-based compensation expense               8.0               7.7
 Other non-cash (credits) charges, net          (24.0)            3.4
 Total non-cash adjustments to income        24.8              46.3
Cash impact of changes in operating assets and    26.1              22.5
liabilities
Net cash provided by operating activities         39.3              74.6
Cash flows from investing activities:
Capital expenditures                              (16.4)            (19.4)
Capitalized software                              (7.9)             (13.3)
Cash paid for business acquisitions, net of cash  (148.8)           0.0
acquired (a)
Sales and maturities of other investments         12.5              0.0
Net cash used in investing activities             (160.6)           (32.7)
Cash flows from financing activities:
Proceeds from issuance of common stock            7.9               2.0
Excess tax benefits from stock-based compensation 1.7               0.1
Taxes paid related to net share settlement of     (1.6)             (2.3)
equity awards
Debt borrowings (payments) net of financing costs 101.2             (24.8)
Repurchase of common stock                        0.0               (0.5)
Net cash provided by (used in) financing          109.2             (25.5)
activities
Effect of exchange rate changes on cash and cash  0.3               1.5
equivalents
Net increase (decrease) in cash and cash          (11.8)            17.9
equivalents
Cash and cash equivalents, beginning of period    104.0             157.8
Cash and cash equivalents, end of period          $92.2             $175.7

(a) Consists of cash paid for dbMotion, Ltd. in the amount of $125 million
(net of $14 million cash acquired) and cash paid for Jardogs in the amount of
$24 million.

Table 4
Allscripts Healthcare Solutions, Inc.
Condensed Non-GAAP Financial Information
(In millions, except per-share amounts)
(Unaudited)
                                            Three Months       Three Months
                                            Ended              Ended
                                            3/31/13            3/31/12
Total revenue, as reported                  $347.1             $364.7
Acquisition-related deferred revenue        0.9                0.8
adjustment
Total non-GAAP revenue                      $348.0             $365.5
Gross profit, as reported                   $134.4             $155.7
Acquisition-related deferred revenue        0.9                0.8
adjustments
Acquisition-related amortization            8.7                7.2
Stock-based compensation expense           1.4                1.0
Non-recurring expenses and                  2.5                0.0
transaction-related costs (a)
Total non-GAAP gross profit                 $147.9             $164.7
Operating income/(loss), as reported        ($28.3)            $13.0
Acquisition-related deferred revenue        0.9                0.8
adjustment
Acquisition-related amortization            16.2               16.4
Stock-based compensation expense           8.0                7.7
Non-recurring expenses and                  20.8               3.0
transaction-related costs (a)
Total non-GAAP operating income             $17.6              $40.9
Net income/(loss), as reported              ($11.6)            $5.8
Acquisition-related deferred revenue        0.7                0.5
adjustment
Acquisition-related amortization            12.4               10.4
Stock-based compensation expense           6.1                4.9
Non-recurring expenses and                  16.0               1.9
transaction-related costs
 Tax rate alignment                     (7.4)              0.0
Non-GAAP net income                         $16.2              $23.5
Tax Rate                                    23%                37%
Weighted shares outstanding - diluted       173.7              192.9
Earnings per share - diluted, as            ($0.07)            $0.03
reported
Non-GAAP earnings per share - diluted       $0.09              $0.12
Note: all adjustments to reconcile GAAP to non-GAAP net income
are net of tax.
(a) Non-recurring expenses and transaction-related costs included in cost of
revenue totals $2.5 million for the three months ended March 31, 2013 related
to the MyWay product consolidation program.

Operating expenses include non-recurring expenses and transaction-related
costs of approximately $18.3 million and $3.0 million for the three months
ended March 31, 2013 and 2012, respectively, comprised of the following:
                                            
                                                               Three Months
                                            Three Months       Ended
                                            Ended
                                            3/31/13            3/31/12
Severance and other costs                   $12.6              $0.0
MyWay product consolidation                 3.7                0.0
Transaction-relatedcosts                   2.0                1.5
Other                                       0.0                1.5
                                            $18.3              $3.0



Table 5
Allscripts Healthcare Solutions, Inc.
Non-GAAP Financial Information - Adjusted EBITDA
(In millions)
(Unaudited)
                                   Three Months        Three Months
                                   Ended               Ended
                                   3/31/13             3/31/12
Total revenue, as reported         $347.1              $364.7
 Acquisition related deferred  0.9                 0.8
revenue adjustment
Total non-GAAP revenue             $348.0              $365.5
Net income/(loss), as reported     ($11.6)             $5.8
Tax provision/(benefit)            (13.2)              3.7
Interest expense (income) and      3.2                 2.0
other (income) expense (a)
Stock-based compensation expense   8.0                 7.7
Depreciation and amortization      40.8                35.2
Acquisition-related deferred       0.9                 0.8
revenue adjustments
Acquisition-related amortization   1.2                 0.0
Non-recurring expenses and         20.4                3.0
transaction-related costs (b)
Non-GAAP adjusted EBITDA           $49.8               $58.3
 Non-GAAP adjusted EBITDA      14%                 16%
margin
(a) Interest expense (income) and other (income) expense has been adjusted
from the amounts presented in the statements of operations in order to remove
the amortization of deferred debt issuance costs from interest expense since
such amortization is also included in depreciation and amortization.
Additionally, the amount presented for the three months ended March 31, 2013
excludes gains on investments totaling $8.0 million.
(b) Depreciation expense totaling $0.4 million has been excluded from
non-recurring expenses for the three months ended March 31, 2013 since this
amount is also included in depreciation and amortization.



Table 6
Allscripts Healthcare Solutions, Inc.
Supplemental Data Sheet
(In millions)
(unaudited)
                                                                                Pct Change
             CY 2012                      CY 2013                YTD            2013/2012  2013/2012
             Q1     Q2     Q3     Q4      Q1     Q2   Q3   Q4    CY  CY   Q1         YTD
             2012   2012   2012   2012    2013   2013 2013 2013  2012   2013
Bookings     $194.6 $194.1 $161.9 $180.7  $177.7 -    -    -     $194.6 $177.7  -8.7%      -8.7%
Contract
Backlog:
Systems     $126   $122   $111   $107    $101   -    -    -     $126   $101    -20.4%     -20.4%
Professional 375    381    395    376     387    -    -    -     375    387     3.4%       3.4%
services
Maintenance  853    849    860    875     843    -    -    -     853    843     -1.1%      -1.1%
Transaction
processing   1,509  1,485  1,461  1,450   1,413  -    -    -     1,509  1,413   -6.3%      -6.3%
and other
Total
Contract     $2,863 $2,837 $2,827 $2,808  $2,744 -    -    -     $2,863 $2,744  -4.1%      -4.1%
Backlog

Explanation of Non-GAAP Financial Measures

Allscripts reports its financial results in accordance with generally accepted
accounting principles, or GAAP. To supplement this information, Allscripts
presents in this release non-GAAP revenue, gross profit, operating income and
net income, including non-GAAP net income on a per share basis, and Adjusted
EBITDA, which are non-GAAP financial measures under Section 101 of Regulation
G under the Securities Exchange Act of 1934, as amended.

  oNon-GAAP revenue consists of GAAP revenue as reported and adds back
    acquisition-related deferred revenue adjustment booked for GAAP purposes.
  oNon-GAAP gross profit consists of GAAP gross profit as reported and adds
    back acquisition-related deferred revenue adjustment booked for GAAP
    purposes and excludes acquisition-related amortization, stock-based
    compensation expense, and non-recurring expenses and transaction-related
    costs.
  oNon-GAAP operating income consists of GAAP operating income as reported
    and adds back acquisition-related deferred revenue adjustments booked for
    GAAP purposes and excludes acquisition-related amortization, stock-based
    compensation expense, and non-recurring expenses and transaction-related
    costs.
  oNon-GAAP net income consists of GAAP net income as reported, excludes
    acquisition-related amortization, stock-based compensation expense and
    non-recurring expenses and transaction-related costs, and adds back
    acquisition-related deferred revenue adjustments, in each case net of any
    related tax effects. Non-GAAP net income also includes a tax rate
    alignment adjustment.
  oAdjusted EBITDA is a non-GAAP measure and consists of GAAP net income
    (loss) as reported and adjusts for: the provision for revenue deferral;
    provision/(benefit) for income taxes; net interest expense and interest
    income and other income/(expense); stock-based compensation expense;
    depreciation and amortization; deferred revenue adjustment; non-recurring
    and transaction-related costs; and non-cash asset impairment charges.

Acquisition-Related Deferred Revenue. Acquisition-related deferred revenue
adjustments reflect the fair value adjustments to deferred revenues acquired
in business acquisitions. The fair value of deferred revenue represents an
amount equivalent to the estimated cost plus an appropriate profit margin, to
perform services related to the acquiree's software and product support, which
assumes a legal obligation to do so, based on the deferred revenue balances as
of the acquisition date. Allscripts adds back this deferred revenue for its
non-GAAP financial measures because it believes the inclusion of this amount
directly correlates to the underlying performance of Allscripts operations.

Acquisition-Related Amortization. Acquisition-related amortization expense is
a non-cash expense arising primarily from the acquisition of intangible assets
in connection with acquisitions or investments. Allscripts excludes
acquisition-related amortization expense from non-GAAP operating income and
non-GAAP net income because it believes (i) the amount of such expenses in any
specific period may not directly correlate to the underlying performance of
Allscripts business operations and (ii) such expenses can vary significantly
between periods as a result of new acquisitions and full amortization of
previously acquired intangible assets. Investors should note that the use of
these intangible assets contributed to revenue in the periods presented and
will contribute to future revenue generation and the related amortization
expense will recur in future periods.

Stock-Based Compensation Expense. Stock-based compensation expense is a
non-cash expense arising from the grant of stock awards to employees.
Allscripts excludes stock-based compensation expense from non-GAAP operating
income and non-GAAP net income because it believes (i) the amount of such
expenses in any specific period may not directly correlate to the underlying
performance of Allscripts business operations and (ii) such expenses can vary
significantly between periods as a result of the timing of grants of new
stock-based awards, including grants in connection with acquisitions.
Investors should note that stock-based compensation is a key incentive offered
to employees whose efforts contributed to the operating results in the periods
presented and are expected to contribute to operating results in future
periods and such expense will recur in future periods.

Non-Recurring Expenses and Transaction-Related Costs. Non-recurring expenses
in the first quarter of 2013 relate to certain severance, product
consolidation, legal, consulting, and other charges incurred in connection
with activities that are considered one-time.

Transaction-related costs during the first quarter of 2013 are fees and
expenses, including legal, investment banking and accounting fees incurred in
connection with the acquisitions of dbMotion, Ltd. and Jardogs. Allscripts
excludes transaction-related costs from non-GAAP operating income and non-GAAP
net income because it believes (i) the amount of such expenses in any specific
period may not directly correlate to the underlying performance of Allscripts
business operations and (ii) such expenses can vary significantly between
periods.

Tax Rate Alignment. Tax adjustment to align the current quarter's effective
tax rate to the expected annual effective tax rate.

Management also believes that non-GAAP revenue, gross profit, operating
income, net income and non-GAAP net income on a per share basis, and Adjusted
EBITDA provide useful supplemental information to management and investors
regarding the underlying performance of the Company's business operations.
Acquisition accounting adjustments made in accordance with GAAP can make it
difficult to make meaningful comparisons of the underlying operations of the
business without considering the non-GAAP adjustments that we have provided
and discussed herein. Management also uses this information internally for
forecasting and budgeting as it believes that these measures are indicative of
the Company's core operating results. In addition, the Company uses non-GAAP
revenue, operating income, net income and/or Adjusted EBITDA to measure
achievement under the Company's stock and cash incentive compensation plans.
Note, however, that non-GAAP revenue, gross profit, operating income and net
income and non-GAAP net income on a per share basis and Adjusted EBITDA are
performance measures only, and they do not provide any measure of the
Company's cash flow or liquidity. Non-GAAP financial measures are not in
accordance with, or an alternative for, measures of financial performance
prepared in accordance with GAAP and may be different from non-GAAP measures
used by other companies. Non-GAAP measures have limitations in that they do
not reflect all of the amounts associated with Allscripts results of
operations as determined in accordance with GAAP. Investors and potential
investors are encouraged to review the reconciliation of non-GAAP financial
measures with GAAP financial measures contained within the attached condensed
consolidated financial statements.

(Logo: http://photos.prnewswire.com/prnh/20100901/CG58147LOGO)



SOURCE Allscripts Healthcare Solutions, Inc.

Website: http://www.allscripts.com
Contact: Investors, Seth Frank, 312-506-1213, seth.frank@allscripts.com,
Media, Claire Weingarden, 312-447-2442, claire.weingarden@allscripts.com
 
Press spacebar to pause and continue. Press esc to stop.